a

Identify the best accounting model classification(s) for each of the investments described above below (1) IFRS. 1. Peach Inc. bought 5,000 shares in Pear Inc., a publicly listed company, for $2 per share. The shares in Pear Inc. are held to sell in the near term or to generate profits from short-term fluctuations in price. 2. Grapes Inc. purchased 1,000 shares in Cherry Inc for $2,500, as a long-term passive investment. Grapes Inc. management has indicated that they would like for any gains and losses related to these shares to bypass earnings. 3. Mango Inc. purchased $2 million in 2% bonds of Pineapple Inc. due in 10 years. Interest is payable annually. Mango Inc's business model is to hold the bond to maturity to collect contractual cash flows. 4. Banana Inc. purchased 22% of the shares of Plum Inc. for $50,000, and has demonstrated significant influence over Plum since the purchase. 1. Amortized cost 2. Cost Equity method 3. FV-NI FV-NI or FV-OCI 4. FV-OCIDate Account Titles and Explanation Debit Credit July 1, 2020 FV-OCI Investments 1020 Cash 1020 August 1, 2020 Dividend Receivable 170 Dividend Revenue 170 August 20, 2020 Cash 170 Dividend Receivable 170 December 31, 2020 4 FV-OCI Investments 170 Unrealized Gain or Loss - OCI 170 September 15, 2021 4 170 (To adjust to fair value on date of disposition) Cash 1530 FV-OCI Investments 1530 (To record disposal) Cash 1360 Gain on Sale of Investments 1360 (To reclassify holding gain)